AdvaMed Joins Ministerial Forum on Global Supply Chain Resilience
WASHINGTON, D.C. – This week, the Advanced Medical Technology Association (AdvaMed), the world’s largest trade association representing medical device manufacturers, took part in the Biden Administration’s 2022 Global Supply Chain Ministerial to discuss key strategies to address supply chain disruptions in the healthcare sector. As a member of the Administration’s Joint Supply Chain Resilience Working Group, AdvaMed has engaged in and led conversations between the medtech industry, government officials, and critical suppliers such as semiconductor chip manufacturers, urging all parties to prioritize the health care industry.
The ministerial, co-hosted by the United States Departments of State and Commerce, follows up on President Joe Biden’s 2021 Global Supply Chain Summit, which brought together foreign partners to discuss addressing supply chain bottlenecks and long-term supply chain resiliency. Participating stakeholders, including AdvaMed, comprise business, labor, civil society, and subnational officials taking part in four sessions (Crisis Response; Enabling Environment/Investment; Transportation/Logistics; Workforce Development/Labor). The sessions will produce a summary of conclusions that will be reported to Secretaries Blinken and Raimondo and their foreign counterparts.
“AdvaMed is proud to join other national leaders to address the supply chain challenges impacting the global medtech industry and the patients we serve,” said Scott Whitaker, AdvaMed President and CEO. “Whether it is semiconductor chips or medical-grade packaging, these inputs are vital for the manufacturing of countless life-saving medical devices. With pervasive shortages exacerbated by the ongoing pandemic and other global factors, if we do not prioritize health care to address both the short- and long-term supply chain issues, we will see a health crisis for millions of patients. We thank Secretary Blinken and Secretary Raimondo for their leadership on this issue and for hosting this important summit this week.”
“These discussions between government and business leaders are key to addressing our ongoing supply chain challenges, and we are grateful for the opportunity to engage with stakeholders who share our concerns,” said Abby Pratt, AdvaMed Sr. Vice President and member of the Joint Supply Chain Resilience Working Group Executive Committee. “While supply chain disruptions broadly impact every industry, a lack of critical parts and components for medtech manufacturers will disrupt the health care delivery system and undermine our national security. AdvaMed will continue to engage with the federal government and supply chain partners to address these short- and long-term supply chain issues and advocate for the prioritization of health care.”
Earlier this month, Deloitte released the findings of a follow-up survey, commissioned by AdvaMed, of medical device manufacturers that found since the initial survey in July 2021, semiconductor disruptions continue across multiple chip types, and medtech companies are more pessimistic, facing depleted inventory, reduced manufacturing, and extended lead times. The study found that medtech companies are doing their best to react to ongoing pressures, including by increasing stocking levels, seeking alternative sources of supply, and utilizing alternative transportation options. However, 75 percent of respondents reported that their customers are turning to alternative treatment types, alternate products, and new strategies.